My life has taken a step forward I have been promoted at work and at 23 im earning 50k not sure if that’s great or not. I currently have a IP which I own 150k on and by the end of this year I should have saved around 25k. In recent months I have seen prices of property sky rocketing so I wouldn’t mind purchasing another one soon before they get any higher PS im based in Melbourne, What would do?
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
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Hi johann,
Congrats on getting into the property market at such a young age, its always the lament of the property investor that they wish they'd started earlier. I started roughly the same time as you, but even so, wish I'd started earlier. Quite impressed that you're able to save $25k per annum whilst earning $50k, some fantastic dedication.
As far as whether you should buy more property, this question is really hard to answer without understanding your financial situation and what you're looking at buying. You've really got to take affordability into consideration, assume that you're looking at taking out antoher $150k mortgage, you'll essentially double your outgoings on investment property, including your susceptability to repairs, damage to property, insurance, vacant property, etc etc. So you'll really need to crunch your numbers and determine whether another property is viable for you. It may be worth considering to sit your 25% in an offset on your existing mortgage and reduce the interest that you're paying on that property??
But if you're keen to get another property under your belt, and if the numbers stack up, then I can't see why you shouldn't buy another.
get a line of credit and buy something in queensland.do your homework and i am sure you will find something.you are young put your head down and by the time you are 35 you could/should be able to retire.borrow the lot stamp duty evrything and leave your own money in a line of credit.go to the ato website and look up private binding ruling 69725 it should help you.
glenn
Thanks for your advice & encouragement much appreciated.
i can give u a quick outline.I currently live with my parents they have been really good to me as they dont charge me rent or anythnig like that as long as my money is put in to good use they have no problem.
Over the course of the weekend i will do some calcuations on if i were to purhcase a second property what will my outlays be like u said insurance, repairs and even my own bill registration and etc.
If u where in the same sisutation as me what area would u look at?
i also have an idea maybe to buy a block of land and build a house later on.Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi thanks for your comment
have you got the link? i cant find the link to binding ruling 69725?so in your opinion say if i were to purhcase a block of land for 150k or a house for 250K should i borrow the whole amount?
got any areas in melbourne to look at while queensland would be so bad either i guess.Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
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